Shares of Tata Investment Corporation rose 12.6% to hit an intra-day high of Rs 7,349.95. Tata Motors shares jumped 3.2% while that of Tata Chemicals increased by 7% after Tata Group initiated work on the IPO of Tata Capital, the flagship financial services arm.
Tata Chemicals was trading at a price of Rs 1,095 and reached as much as Rs 1,107 while Tata Motors was trading at Rs 742.60 on the National Stock Exchange. Tata Investment Corporation, Tata Motors, and Tata Motors have significant holdings in Tata Capital.
Tata Capital operates as a non-banking financial services (NBFC) company and is a subsidiary of Tata Sons, which is the main investment holding firm of the Tata Group.
“Work has begun on the proposed initial public offer. This is to comply with RBI’s norms for ‘upper layer’ NBFCs. No final call has been taken on the quantum, but the deal is expected to be a big-bang one in excess of Rs 15,000 crore,” reported Moneycontrol.com citing a source. “Law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital have been roped in as advisors for now. Pitches to engage other investment banks will be conducted soon, and the deal is likely to be a combination of primary and secondary issue of shares.”
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